Question
Determine par value for a bond. Bonds are usually quoted in the marketplace as a percentage of par, so a bond quote of 99.5 indicates
Determine par value for a bond. Bonds are usually quoted in the marketplace as a percentage of par, so a bond quote of 99.5 indicates the bond is priced at 99.5% of par, e.g. $995 for a $1,000 bond.
Bond:
Coupon: 4.25%
Type: Fixed
Frequency: Semi-Annually
Years to Maturity: 20
Current Price: $78.28
Step by Step Solution
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To determine the par value for a bond we can use the current price and the bond quote pr...
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John E Freunds Mathematical Statistics With Applications
Authors: Irwin Miller, Marylees Miller
8th Edition
978-0321807090, 032180709X, 978-0134995373
